It is critical for every company to extend its footprints by creating a worldwide presence in order to establish itself as a benchmark in its sector and increase its sales. Establishing a branch office in Dubai is the most logical option in light of this consideration. Over the years, Dubai has established itself as one of the world’s most important business destinations.
A robust economy, growing population, rising standard of living, excellent infrastructure, strategic global location, increased influx of foreign visitors, all of which are combined with an exceptionally attractive tax structure, make Dubai the ideal destination for businesses and entrepreneurs from all over the world to establish a presence in the city and establish a presence in Dubai. It is clear that setting up a branch office in an international metropolis like Dubai may be very profitable. If you are contemplating doing so, consider the following:
Let us now consider the most compelling arguments for establishing a branch office in Dubai:
Table of Contents
Taxation in a favourable manner
Dubai’s economy is regarded as one of the most adaptable and diverse in the world, with a diverse range of products and services. This is due to the fact that the nation provides a tax-free environment for virtually all kinds of economic activity. However, branches of foreign banks, hotels, and significant oil and gas corporations are excluded from the list.
Most notably, taxes such as corporation tax, capital gains tax, personal income tax, value-added tax, and withholding tax are not applicable in the United Arab Emirates. This is one of the reasons why most company owners choose to establish a physical presence in Dubai rather than elsewhere.
Aside from that, as compared to other business capitals across the globe, Dubai has the lowest VAT rate at just 5 percent. Furthermore, there are no limitations on the repatriation of money and earnings, and there are no taxes levied on the import and export of products in the United States.
Ownership is at 100 percent.
One of the most significant reasons why businesses or entrepreneurs opt to establish a branch office in Dubai is the fact that they may retain 100 percent ownership of the firm. Or to put it another way, since a branch business is not a separate legal entity but rather an extension of the parent company, there is no need for a local sponsor during the branch office’s establishment.
Despite the fact that it is required to use a local service agent to provide commercial services linked to government agencies, it does not have any ownership interests in the company.
It is more cost-effective to have a branch office in Dubai.
In any case, establishing a branch office in Dubai is unquestionably the most cost-effective method of entering the nation. In contrast to other commercial organisations such as a local company or a free one company, there is no need for a branch company to have shares or authorised capital when it is established.
All you have to do is pay the usual fees, applications, and deposits, which will significantly reduce the amount of money you have to put down as an initial investment.
Furthermore, there is no need for a distinct financial structure in the business, nor is there a requirement for audit reports or bank accounts to be maintained. The result is that you may establish a regional presence in a more cost-effective and simple way as a result of all of these factors.
Location that is easily accessible
In addition, since Dubai is geographically situated between Asia, Africa, and Europe, it is an excellent and convenient location for establishing a branch office that allows virtually any kind of commercial activity to be carried out. It is worth noting that Dubai is home to one of the biggest airports and seaports in the area, which means that company owners will have less headaches when it comes to international freight.
It is very simple to transport goods or merchandises to Dubai from any location in the globe, and it is as simple to transport products or merchandises from Dubai to any location in the world by land, air, or water.
Simply stated, Dubai is the most readily accessible location in the globe from anywhere in the world and provides access to a massive 2.5 billion consumer market, making it the most profitable.
A high quality of life is maintained.
As an added bonus, establishing a branch office in Dubai may be beneficial to your company’s bottom line due to the fact that the people who live here have a good quality of life and high living standards. They have a substantial amount of discretionary money as well as strong buying power.
Instead, the United Arab Emirates has been rated as the topmost nation with the highest quality of life in the Middle East and North Africa area, and as the 15th best country in the world out of 160 countries. Furthermore, because of the low crime rates in the area, it is considered to be one of the safest cities in the whole globe.
In Dubai, there is excellent infrastructure for establishing a branch office.
Another compelling argument to establish a branch office in Dubai is that the city boasts one of the world’s most advanced and well-maintained infrastructures, making it an ideal choice for business expansion. The same can be said about transportation infrastructure, such as airports and seaports, as well as road networks and telecommunications systems that operate with continuous power supply.
According to the World Economic Forum’s Travel and Tourism Competitiveness Report, Dubai’s infrastructure is considered to be among the finest in the world.
Furthermore, there is no need for you to be concerned about locating an office space or any other kind of facility for conducting your company operations since everything is ready to use and in excellent shape. Furthermore, the government is pursuing the growth of the existing metropolis in terms of new state-of-the-art buildings, roads, and a more convenient public transportation system, in addition to the current expansion. All of these facilities are adequate for establishing a branch office in Dubai for your company.
There are also more factors.
Other favourable factors, such as long-term residency and work visas for expats or foreigners, a plentiful supply of human resources, a secure and stable political and social climate, a favourable investment environment, and government support, combined with a vibrant and growing economy, make the UAE a business-friendly country for companies and entrepreneurs looking to establish a branch office here.
Open a branch office in Dubai as soon as possible!
Dubai is one of the world’s fastest-growing cities, with a population of over one million people. It is undeniably the most conducive environment for the growth of start-up companies. As a result, there is no better moment than right now to establish a branch office in Dubai!